<p>India’s manufacturing sector activity slipped in December to a three-month-low as business sentiment was once again dampened by concerns of supply-chain disruptions in the wake of Omicron as also inflationary pressures.</p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing fell to 55.5 in December from a 10-month high of 57.6 in the previous month.</p>.<p>A reading above 50 denotes expansion in economic activity and below that points to contraction. The manufacturing activity had hit a 10-month-high in November.</p>.<p>Worse, employment went back to contraction mode in December after growing for the first time in November. Before that employment had grown over 50 in July.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/indias-services-sector-activity-in-november-registers-second-fastest-pace-of-growth-since-july-2011-1057181.html" target="_blank">India's services sector activity in November registers second-fastest pace of growth since July 2011</a></strong></p>.<p>“Concerns over elevated price pressures hampered business confidence in December, with firms also worried that the pandemic and supply-chain issues could dampen the recovery next year. The overall degree of optimism remained below its long-run average, despite improving from November's 17-month low," a report by IHS Markit said.</p>.<p>“There were tentative signs that inflationary pressures started to subside, but companies weren't particularly confident that such trend would continue. Despite easing in December, input cost inflation was still running at one of its highest rates in around seven-and-a-half years. The vast majority of firms nevertheless decided to keep their selling prices unchanged, in order to boost sales, with overall charges up only marginally in December," Pollyanna De Lima, Economics Associate Director at IHS Markit said.</p>.<p>On the price front, Lima said input costs rose sharply. Despite easing in December, input cost inflation was still running at one of its highest rates in around seven-and-a-half years. The vast majority of firms nevertheless decided to keep their selling prices unchanged, in order to boost sales, with overall charges up only marginally in December.</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>India’s manufacturing sector activity slipped in December to a three-month-low as business sentiment was once again dampened by concerns of supply-chain disruptions in the wake of Omicron as also inflationary pressures.</p>.<p>The Purchasing Managers’ Index (PMI) for manufacturing fell to 55.5 in December from a 10-month high of 57.6 in the previous month.</p>.<p>A reading above 50 denotes expansion in economic activity and below that points to contraction. The manufacturing activity had hit a 10-month-high in November.</p>.<p>Worse, employment went back to contraction mode in December after growing for the first time in November. Before that employment had grown over 50 in July.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/indias-services-sector-activity-in-november-registers-second-fastest-pace-of-growth-since-july-2011-1057181.html" target="_blank">India's services sector activity in November registers second-fastest pace of growth since July 2011</a></strong></p>.<p>“Concerns over elevated price pressures hampered business confidence in December, with firms also worried that the pandemic and supply-chain issues could dampen the recovery next year. The overall degree of optimism remained below its long-run average, despite improving from November's 17-month low," a report by IHS Markit said.</p>.<p>“There were tentative signs that inflationary pressures started to subside, but companies weren't particularly confident that such trend would continue. Despite easing in December, input cost inflation was still running at one of its highest rates in around seven-and-a-half years. The vast majority of firms nevertheless decided to keep their selling prices unchanged, in order to boost sales, with overall charges up only marginally in December," Pollyanna De Lima, Economics Associate Director at IHS Markit said.</p>.<p>On the price front, Lima said input costs rose sharply. Despite easing in December, input cost inflation was still running at one of its highest rates in around seven-and-a-half years. The vast majority of firms nevertheless decided to keep their selling prices unchanged, in order to boost sales, with overall charges up only marginally in December.</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
